Reliance Ports Gets Rs 1,767 Crore Irregular Tax Benefits: CAG

The Logical Indian

November 25th, 2016 / 12:02 PM

Reliance Ports Gets Irregular Tax Benefits

Source: economictimes | Representational Image: patrika | hindustantimes

Reliance Ports Gets Irregular Tax Benefits

A report by Comptroller and Auditor General of India (CAG) was tabled in the Parliament on Tuesday which stated that there had been an irregularity in allowing deductions by the Assessing Officer which has resulted in tax effect of Rs 2,716.79 crores.

The report mainly focussed on the big corporate houses involved in misusing the provisions of Income Tax deductions in infrastructure projects.

Income Tax Department was also pulled up by CAG for giving tax benefits of Rs 1,767 crore to Reliance Industries. The deduction was allowed to the port and terminal arm of the company on the basis that it was for public facilities.

Rs 5,245.38 was allowed as a deduction to Reliance Ports and Terminals Ltd without examining the eligibility criteria. The deduction was towards the construction of four private jetties at Port Sikka, Gujarat.

As per CAG, since the jetties were not for the public, but for the private use of  Reliance Ports, the deduction allowed was unjustified.

The IT department differed from the observations made by CAG and stated that IT Act does not distinguish between ‘public facility’ and ‘private facility’ to claim deductions under Section 80 IA.

IT department further cleared that the use of the jetties was open to other people when RIL Group of companies did not use it, as reported by The Economic Times. The CAG report is based on test audit conducted by CAG between 2012-13 and 2014-15.

CAG has sought help from the Central Board of Direct Taxes (CBDT) to find out which other companies used this facility.

So far, IT department has not submitted any list of other people or corporations who have used these jetties when not in use by RIL.


Deduction u/s 80-IA of Income Tax Act, 1961

The deduction is claimed in respect of profits and gains from industrial undertakings or enterprises which are engaged in infrastructure development.


Contributors

Edited by :

Share your thoughts..

Related Stories

Robert Vadra

IT Department Asks Robert Vadra To Pay Rs 25 Crore For Tax Evasion

Taxpayers Who Show Less Income Or “Inflating” Deductions Would Be Prosecuted: IT Dept Warns Taxpayers

Pensioners Can Also Claim A Standard Deduction Of Rs 40,000; Read To Know

I-T Dept Uncovers A Rs 3,200 Cr Scam; 447 Companies Divert TDS To Fulfill Business Obligations

Nirav Modi Illegally Diverted Rs 1,216 Crore Of Diamonds Meant For Export From SEZ To Domestic Market, Reveals IT Dept Probe

Protected Monuments

Parliament Passes Bill Allowing Government To Carry Out Infrastructural Activities Near Protected Monuments

Latest on The Logical Indian

News

Gujarat: Sweeper Seen On Camera Giving Stitches At Civil Hospital, Officials Say It Is An Usual Affair

News

Explain Why Yogi Adityanath Should Not Be Prosecuted: SC Asks UP Govt

Sponsored

It’s Not Hard to Make A Conversation. This World Senior Citizen Day, Let’s Try To Connect With Our Elders

News

Bihar: Miscreants Beat Up & Attempt To Set Professor Ablaze Over Anti-Vajpayee Post

News

Pune: Maratha Outfits On Indefinite Strike Demanding Termination Of Police Cases Against Agitators

News

Pune: Pining Lover Puts Up 300 Banners To Apologise To Girlfriend; Leaves Police Upset

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.